Promoting your business with a customer lottery or raffle
This type of lottery cannot make a profit so is not suitable for fundraising. All of the money collected through ticket sales must be used to pay for the prizes and any expenses incurred organising the lottery.
A customer lottery or raffle can only be run by a business for its customers at the time they are on the business premises.
Tickets must not be sold to children under 16 years of age.
No prize can be more than £50 in value.
No rollover of prizes from one lottery to another is permitted.
Only one lottery draw is permitted in each period of seven days.
Tickets must show the name and address of the organiser, the ticket price, any restrictions as to who may or may not buy a ticket, and state that the rights created by the ticket are non-transferable.
If you run a business and would like to run a lottery by selling tickets to customers on your business premises you can do so without an operating licence from the Gambling Commission, unless your business is subject to a gambling premises licence.
If your business is subject to a gambling premises licence customer lotteries are prohibited.
The position is different in Scotland where customer lotteries can be promoted on licensed gambling premises, without an operating licence from the Gambling Commission.
If you are organising a customer lottery it is your responsibility to ensure you are compliant with the law. If in doubt, you should seek legal advice.